What s New for You? NSIPS Blended Retirement System Service Member Self-Service Capability

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1 NSIPS Blended Retirement System Service Member Self-Service Capability WNFY NSIPS BRS Service Member Issue 1 What s Changing? New Blended Retirement System A new Blended Retirement System (BRS) goes into effect January 1, New accessions, on or after January 1, 2018, will automatically be enrolled in the new BRS. Everyone currently serving in the Uniformed Services as of December 31, 2017 will be grandfathered under their current retirement system. Active Component Service Members with less than 12 years of service and Reserve Component Service Members with less than 4,320 retirement points as of December 31, 2017 will have the choice to stay with the legacy retirement system or opt into the new BRS. New NSIPS BRS Member Self-Service Capability The Navy Standard Integrated Personnel System (NSIPS) is being expanded to provide IT capability for Service Members to complete many of the required BRS lifecycle events shown in the below BRS process flow diagram. Processes designated green will be performed in NSIPS. Highlights of each event are provided in this WNFY for general awareness. Job Performance Aids (JPAs) providing step by step instructions for completing NSIPS BRS selfservice actions are available in NSIPS for training and help. (See Page 3 for access instructions.) 1

2 NSIPS BRS Member Self-Service Capability The following Member Self-Service actions will be performed in NSIPS throughout a Service Member s career: View Blended Retirement Status View/Print BRS Eligibility Notification Letter Retrieve, Review, and Complete the Budget/Financial Plan Acknowledgement View/Print Continuation Pay Notification Letter Retrieve, Review, and Complete Continuation Pay Election Availability NSIPS is currently sending BRS Opt-In eligibility notifications to Service Members meeting the Opt- In criteria (Active Duty Service Members with less than 12 years of Service or Reserve Service Members with less than 4,320 retirement points as of December 31, 2017). NOTE: Service Members must have a valid address in NSIPS to receive BRS Opt-In eligibility notification. If you are not receiving NSIPS s, and believe you meet the Opt-In eligible criteria, contact your Command Career Counselor or Command Pay and Personnel Administrator. NSIPS BRS system functionality will be deployed with NSIPS Release on December 7, Service Members may begin accessing the BRS module and view their BRS eligibility status on December 8, Opt-In eligible Service Members may elect BRS in DFAS mypay beginning January 1, 2018 through December 31, After electing BRS in mypay, Service Members should verify their BRS election status in NSIPS to ensure enrollment is complete. Service Members will have access to the remaining NSIPS Member Self-Service capabilities described in the following pages once enrolled in BRS. Access To access BRS Member Self-Service capabilities: Login to NSIPS nsipsclo/jsp/index.jsp. Select Employee Self-Service link under the NSIPS Main menu. Select Blended Retirement System link under the Retirement and Separations folder. 2

3 Training Detailed step-by-step instructions for completing BRS self-service actions in NSIPS may be accessed via the BRS Job Performance Aid (JPA) link under the Training Section located on the NSIPS homepage. Help NSIPS Help Desk Toll Free: Comm: DSN:

4 BRS Service Member Lifecycle Events Step 1 - Receive BRS eligibility notification 1. Ensure address is updated in NSIPS 2. Receive NSIPS Note: The BRS Eligibility is scheduled to transmit on the 2nd and 12th of every month that a service member is eligible but has not yet elected into BRS. "This is to inform you that on January 1, 2018, the Department of Defense will introduce a new military retirement system known as the "Blended Retirement System". Please take action as necessary." 3. Obtain additional BRS information on Navy Blended Retirement System Webpage at: Management.aspx Step 2 - Verify BRS eligibility Verify BRS Status and Opt-In Eligibility in NSIPS (Blended Retirement Opt-in Tab) View/Print BRS Eligibility Notification Letter Auto Enrolled Opt-In Enrolled On Hold Opt-In Eligible Not Eligible Opt-In Pending Erroneously Enrolled Opt-In Period Expired From: noreply-npc@navy.mil Subject: Blended Retirement System Member Options Date: Tuesday, October 31, :44:49 On January 1, 2018, the Department of Defense will introduce a new military retirement system known as the Blended Retirement System. Our records indicate you will have the opportunity to enroll in the Blended Retirement System in 2018 because you meet one of the following two criteria, 1) You are an active component member and will have fewer than 12 years of service as of December 31, 2017, or 2) You are a reserve component member, to include Full Time Support (FTS) personnel, and will have fewer than 4,320 points as of December 31, This new plan represents a significant change from the current military retirement. Under the Blended Retirement System, service members will be eligible to receive government contributions to their Thrift Savings Plans in exchange for a reduced pension upon retirement. While you will have a choice to make in 2018, it is important to note that you will remain covered under your current retirement plan unless you choose to enroll in the Blended Retirement System. You will NOT BE AUTOMATICALLY enrolled to the Blended Retirement System. The first opportunity to elect to enroll in the Blended Retirement System will be on January 1, You will have the entirety of 2018 to make your election. If you decide to enroll in the Blended Retirement System, that election is IRREVOCABLE. Online training is mandatory and will better inform you of the benefits under your current retirement system compared to the benefits of the Blended Retirement System. This course, the Blended Retirement System Opt-In Course, is available on Navy elearning at and Joint Knowledge Online at The Blended Retirement System will not be right for everyone, so it is important to consider the specifics of your individual situation in making this election. The Opt-In Course will assist you with understanding the factors you should consider. In addition to the financial considerations involved in opting in, there are some policy considerations that should be factored into your opt-in decision. If you will reach 12 years of service (YOS) based on your Pay Entry Base Date (PEBD) in calendar year 2018 (CY18) and you are interested in receiving continuation pay (CP), you must opt-in to the Blended Retirement System and elect to take CP prior to reaching 12 YOS. If you will reach 12 YOS within the first 90 days of CY18 after opting into the Blended Retirement System you may be required to manually elect CP due to systems processing lag. Finally, if you are a reservist who will be eligible to retire with pay in CY18, and wish to enroll in the BRS with the lump sum retirement payment option, you must opt-in to the Blended Retirement System and then elect the lump sum payment option at least 90 days prior to reaching your eligible retirement age. If you do not elect the lump sum option prior to the 90 day requirement, you will be limited to the full pay option under the Blended Retirement System. For more information, please visit the Navy Blended Retirement System Webpage at: Management.aspx. If you have questions about your eligibility for the Blended Retirement System, please consult your Command Career Counselor or Command Financial Specialist. Not Eligible Eligible 4 4

5 Step 3 - Complete BRS training 1. Complete BRS Opt-in Course via Navy elearning or Joint Knowledge Online (JKO) Navy elearning - (Course Number: JKDDC-BRS-OPTIN-1) JKO- (Course Number: J3OP-US1332) 2. Complete Budget/Financial Plan and determine if BRS is in your best interest Meet with Financial Planner Access BRS Comparison Calculator NOTE: A financial planning worksheet is available via the Commander, Navy Installations Command (CNIC) personal planning finances Web page at: Step 4 - Elect BRS 1. Make election in mypay NOTE: BRS Opt-In training must be completed prior to opting into BRS in mypay. NOTE: The decision to Opt-In to BRS is irrevocable (cannot Opt-Out of BRS once enrolled). 6 5

6 Step 5 - Verify BRS election & enrollment 1 2 Verify Opt-In Election status in NSIPS (Blended Retirement Opt-in Tab) Verify BRS Enrollment status Note: After electing BRS in mypay, it is possible a Service Member may initially see their BRS Enrollment status in NSIPS updated to Enrolled while still indicating an Opt-In Election status as Not Elected. This is due to separate DoD systems updating NSIPS at different times. The updates should be correctly aligned (Opt-In Elected and BRS Enrolled ) within 30 days of BRS election in mypay. Not Elected Elected Not Enrolled Enrolled 7 Step 6 - Begin Thrift Savings contributions 1. Service Members in BRS will automatically receive 1% base pay in TSP For Opt-in members this will begin the next pay period after Opt-In For New Accessions on or after January 1, 2018 this will begin 60 days after entering into service 2. Service Members will be eligible for matching funds up to 4% base after completing 2 years of service Note: You can start, change, or stop your personal TSP contribution at any time throughout the year. 8 6

7 Step 7 - Receive Financial Literacy Training (FLT) notification at Career Touchpoints 1. Ensure address is updated in NSIPS 2. Receive notification of required financial literacy training in NSIPS " Per the Financial Literacy Requirements in the National Defense Authorization Act 2016, this notification is sent to inform you that based on a current life event: a. Change of Duty Station b. Deployment/Mobilization c. First Duty Station/Initial Drill d. Major Life Events (marriage, divorce, birth of first child, disabling sickness or condition) e. Promotion f. Reenlistment g. Retirement/Separation h. Vested at Completion of 2 Years of Service You are required to complete the appropriate financial literacy training and review your budget/financial plan. Please consult your Command Financial Specialist or a Personal Financial Manager at the Fleet and Family Service Center at your earliest opportunity to obtain the required training." NOTE: The Navy Financial Literacy mobile application includes a checklist of required financial literacy training topics for each touchpoint. 9 Step 8 - Update Budget and Financial Plan at Career Touchpoints Update Budget and Financial Plan at Career Touchpoints (offline activity not performed in NSIPS) 2 Acknowledge Budget and Financial Plan Reviewed (Budget Financial Plan Tab) Select appropriate touchpoint in the Reviewed Based On dropdown menu Select Yes/No Select reviewed based on option Date auto-populates when you select Yes 10 7

8 Step 9 - Receive Continuation Pay eligibility notification 1. Ensure address is updated in NSIPS 2. Receive Continuation Pay eligibility letter in NSIPS Subject: Continuation Pay Eligibility Content: This is to inform you that you have been identified as eligible to receive Continuation Pay. Please take action as necessary. Note: The CP Eligibility is sent at the following times: When a member is enrolled in BRS, has not made a CP Election, and the current date is equal to the service member s Pay Entry Base Date (PEBD) plus: 11 years and 6 months 11 years and 9 months 11 years and 11 months Step 10 - Elect Mid-career Continuation Pay Verify Continuation Pay eligibility in NSIPS (Continuation Pay Tab) First day to elect is 11 years 6 months after PEBD Last day to elect is 11 years 11 months after PEBD View/Print Continuation Pay Notification Letter Indicate CP Election (YES or NO) If elected, select payment option Single Lump Sum Payment Two Annual Payments (50%) Four Annual Payments (25%) Note: It is recommended that Service Members discuss potential amount of Continuation Pay with their Career Counselor or Financial Planner to determine if the base amount may increase depending on special skills held by that member. Continuation Pay election obligates the Service Member to four additional years of service. 12 8

9 Step 11 - Elect Retirement Payment option 1. Select retirement pay option by completing DD Form-2656 First day to elect is 1 year before approved retirement date Last day to elect is 90 days before approved retirement date Options Full Monthly Retirement Pay (default) Lump Sum Payment (50/50)* Lump Sum Payment (25/75)* *Disbursement options for lump sum portion: Single Lump Sum Payment Two Annual Payments (50%) Four Annual Payments (25%) Prepared by: PMW 240 Enterprise Change Management (ECM) Team. Distribution Statement C: Distribution authorized to U.S. Government Agencies and their Contractors. Other requests for this document shall be referred to PMW 240 ECM: Ms. Kristie Thomas, PMW 240 ECM Manager, kristie.thomas@navy.mil 9